Shaw Printers has contracts to complete weekly supplements required by forty-six customers. For the year 2019, manufacturing overhead cost estimates total $840,000 for an annual production capacity of 10 million pages. Currently, company is allocating its manufacturing overhead costs using a single plantwide OH rate based on number of pages.

For 2019, Shaw decided to evaluate the use of additional cost pools based on ABC concept. After analyzing manufacturing overhead costs, it was determined that number of design changes, setups, and inspections are the primary manufacturing overhead cost drivers. The following information was gathered during the analysis:

Cost pool Manufacturing overhead costs Activity level

Design changes $ 160,000 200 design changes

Setups 670,000 4,000 setups

Inspections 80,000 16,000 inspections

Total manufacturing overhead costs $910,000

During 2019, two customers, Money Managers and Hospital Systems, are expected to use the following printing services:

Activity Money Managers Hospital Systems

Pages 60,000 76,000

Design changes 10 2

Setups 20 10

Inspections 30 38

Under ABC costing, compute the amount of inspection cost that would be allocated to Hospital Systems?